AVI Global Trust Plc Company Profile and Performance

AVI Global Trust Plc is a company that has been around for over 100 years, with a rich history that dates back to 1915. It was originally founded as a bakery in South Africa.

The company has since grown and evolved into a leading food and beverages business with a diverse portfolio of brands. AVI Global Trust Plc operates in 19 countries across Africa, Asia, and Europe.

AVI Global Trust Plc is listed on the Johannesburg Stock Exchange (JSE) and has a market capitalization of over R10 billion.

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AVI Global Trust is led by a seasoned executive team. Joe Bauernfreund serves as the CEO, overseeing the company's overall strategy and direction.

The company's management structure is well-defined, with Tom Treanor holding the position of Chief Technology/Science/R&D Officer since 2011.

AVI Global Trust has a simple capital structure, with a total of 487,662,627 ordinary shares in issue as of September 2024.

AVI Global Trust plc is an investment business, as shown by its fiscal period description. The company's investment business has seen significant fluctuations in revenue over the years.

In 2020, the investment business reported a revenue of £12.08 million. This is a relatively small amount compared to the company's overall revenue.

The investment business revenue skyrocketed in 2021 to £310 million, indicating a substantial growth in the company's investment activities. This growth is likely due to the company's focus on expanding its investment portfolio.

However, the investment business revenue took a significant hit in 2022, reporting a loss of £97.56 million. This loss could be due to various factors such as market volatility or poor investment decisions.

The company has managed to recover from the loss and reported a revenue of £137 million in 2023. This is a significant improvement from the previous year and indicates the company's ability to bounce back from setbacks.

Here is a summary of the company's investment business revenue over the years:

The Executive Committee of AVI Global Trust plc consists of Joe Bauernfreund as CEO and Tom Treanor as CTO. Joe Bauernfreund has been in his role since - and Tom Treanor has been in his role since 2011.

The Board of Directors includes notable members such as Calum Thomson, Anja Balfour, Graham Kitchen, Neil Galloway, and June Jessop. Graham Kitchen serves as the Chairman of the Board.

As of 30 September 2024, AVI Global Trust plc has a simple capital structure with 487,662,627 ordinary shares in issue. The company has a significant number of shares held in treasury, with 45,600,956 shares not being eligible for voting.

The company has a flexible approach to gearing, using debt to take advantage of investment opportunities. This has resulted in the issuance of several tranches of fixed-rate debt at attractive interest rates.

Here is a breakdown of the company's major shareholders as of the latest available data:

SoftBank Group sold its position in AVI Global Trust's portfolio due to a deterioration in the investment case, particularly related to a strategic shift at SoftBank.

The investment case was weakened by SoftBank's increasingly unconstrained approach to AI investing, which signals a reduced emphasis on shareholder returns, particularly in the form of buybacks.

AVI Global Trust sold SoftBank's position to raise capital for more attractive opportunities during the April 2025 market sell-off.

AVI Global (AGT) has demonstrated a clear strategy and high-conviction approach, generating annualised Net Asset Value (NAV) returns of almost 15% over the last two years.

This strong performance is a testament to the company's ability to navigate market volatility and identify opportunities that others may miss. The company's focus on idiosyncratic catalysts and away from generic market risk has paid off, allowing them to generate significant returns despite challenging market conditions.

AVI Global's NAV returns are impressive, but the company's share price discount to NAV is also noteworthy. As of 2024, the combined share price discount to NAV and the discount on the underlying portfolio sits at 34%.

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Here's a breakdown of the company's NAV returns over the past few years:

AVI Global's strong performance is also reflected in its investment business, which has shown significant growth in recent years. The company's investment business has grown from £12.08 million in 2020 to £161 million in 2024.

The company's capital structure is also noteworthy, with a simple capital structure and a total of 487,662,627 ordinary shares in issue as of 2024. This provides a clear and transparent ownership structure, which can be beneficial for investors.

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AVI Global Trust has consistently outperformed the global equites market over the last five years, with a NAV total return of 98.8% compared to the MSCI ACWI's 81.0% return.

Over this period, the trust has achieved remarkable returns without holding any of the mega-cap technology stocks that have driven global markets. This is evident in the much-lower returns generated by the MSCI ACWI ex US index, which is not influenced by these large-cap US tech stocks.

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The trust's performance can be seen in the table below, which shows the total return cumulative performance over various time periods to 31 July 2025.

Over the past two years, AVI Global Trust has delivered an annualised NAV total return of 14.5%, which is marginally behind the MSCI ACWI's annualised return of 15.2%.

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AVI Global Trust's portfolio has seen significant changes in recent times. The managers have been focusing on raising the trust's exposure to idiosyncratic catalysts and away from generic market risk.

One notable change is the sale of several holdings to fund investments believed to have a greater scope for attractive, event-driven returns. This included the complete exit of long-term position Pershing Square.

The managers have also been increasing exposure to certain holdings, such as Bollore, News Corp, and Hipgnosis Songs Fund, to capitalize on the opportunity to invest across their strategies. This has been done by deploying gearing for the first time since 2021.

AGT's top 10 holdings make up over 60% of the portfolio, reflecting the high-conviction approach taken by the manager. The top three contributors to AGT's 2024 financial year performance – KKR, Hipgnosis, and Schibsted – have all left the portfolio, having played out their respective corporate events.

Here are the top 10 holdings of AGT, highlighting the significant changes to the portfolio since the beginning of the year:

The portfolio has undergone significant changes since our last update. The top 10 holdings now make up over 60% of the portfolio, reflecting the high-conviction approach taken by the manager.

The largest holding in the portfolio is D'Ieteren, a Belgian holding company, which now accounts for almost 10% of the portfolio. However, this weighting will naturally reduce following the payment of its extraordinary dividend.

Since our last update, several holdings have been replaced in the top 10, including Hipgnosis Songs Fund, Aker ASA, FEMSA, Pantheon International, and Schibsted B. They have been replaced by Softbank, Chrysalis Investments, Cordiant Digital Infrastructure, Rohto Pharmaceutical, and Apollo Global Management.

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The portfolio has also seen the addition of new positions, including Reckitt Benckiser, which was initiated at a decade low multiple of around 13x earnings.

Here is a breakdown of the top 10 holdings at 30 June 2025:

The board of AGT has been proactive in managing the trust's share price discount to net asset value (NAV) through share buybacks. They aim to reduce the discount to single figures on a consistent basis.

AGT's board has successfully used share buybacks during periods of unusually wide discounts. This strategy is in the best interests of shareholders, according to the board.

The number of shares repurchased by AGT varies by month, as shown in Figure 21.

AVI Global Trust (AGT) has a clear focus on discount opportunities, which is reflected in its proactive approach to managing the trust's own share price discount to Net Asset Value (NAV). The board uses share buybacks to reduce the discount when it's deemed wide.

AGT's share price discount to NAV has been relatively stable, averaging 8.8% over the 12-month period ended 31 July 2025, with a range of 13.6% to 6.3%. As of 1 August 2025, the discount was 9.0%.

The trust's discount is not just about its own share price, but also the gap between the share prices of investee companies and their underlying intrinsic value. Using a look-through metric, the manager calculates a discount of 34% on a rolling annual basis, which is approaching its widest level since 2006.

AGT's board is committed to managing the discount, and has been buying back shares during periods when it's deemed wide. Over the last 12 months, the trust has been actively reducing the discount, particularly in the last quarter.

Here's a breakdown of AGT's discount over the last 12 months:

This data suggests that AGT's discount has been relatively stable, but still presents an attractive opportunity for investors. The trust's commitment to managing the discount and its focus on discount opportunities make it an attractive option for those looking to invest in a global portfolio.

AVI Global Trust has been making some interesting moves lately. AGT has initiated a modest position in Korean equities, with a 3% allocation across a select group of companies at the end of June 2025.

These holdings offer a governance re-rating opportunity, with companies exhibiting durable earnings, strong balances, and alignment of interest with key shareholders or families. They also have competent management teams in place.

CHRY recently announced a decent uplift to its NAV, which has driven the share price higher and benefited AGT. The company's share price has been trading at an average 51% discount to its estimated intrinsic NAV.

D'Ieteren is now AGT's largest holding, and the company has also initiated new positions in Reckitt Benckiser, Rohto Pharmaceutical, and Cordiant Digital Infrastructure.

The financials and fees of AVI Global Trust are worth taking a closer look at. The investment manager is entitled to an annual management fee of 0.70% of the first £1bn of AGT's net assets and 0.60% of any net assets above £1bn.

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This fee is calculated quarterly by reference to the net assets at the preceding quarter end, and paid monthly. A breakdown of directors' fees is shown on page 20, but we'll focus on the key expenses here.

Marketing expenses were £605,000 for the year ended 30 September 2024, up from £573,000 in the prior year. Advisory and professional fees also increased, reaching £487,000 in 2024 compared to £360,000 in 2023.

Depositary fees were £126,000 in 2024, a slight increase from £123,000 in 2023.

Here's a breakdown of the directors' fees:

The ongoing charges ratio (based on the trust's own running costs) for the year ended 30 September 2024 was 0.87%, up marginally from 0.86% for the prior year.

AVI Global Trust has a focus on discount opportunities, which is reflected in its proactive approach to managing the trust's own share price discount to NAV. The board uses share buybacks during periods when the discount is unnaturally wide.

The goal is to get the discount in single figures on a consistent basis, and a double-digit figure is seen as a buying opportunity. This indicates that the board is committed to maximizing shareholder value.

Third Point Investors is a global investment firm founded by Dan Loeb in 1995. It's known for its activist approach to investing.

The firm focuses on long-term value creation, taking a concentrated portfolio approach to investing in publicly traded companies.

Dan Loeb's investment philosophy emphasizes the importance of taking a contrarian view, often going against the prevailing consensus to uncover undervalued opportunities.

Third Point Investors has a team of experienced investment professionals who work together to identify and capitalize on these opportunities.

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AVI Global Trust has several strengths that make it an attractive investment option. One of its key advantages is that it has generated long-term outperformance versus global equities despite holding none of the major-cap tech stocks.

AVI's activism and overall investment philosophy can generate sudden, idiosyncratic returns, which are more valuable given recent market volatility. This is evident in its ability to create unique opportunities for investors.

AVI offers a unique approach to 'value' investing, providing investors with a source of diversification. This is a key benefit for investors looking to spread their risk.

However, AVI also has some weaknesses. One of its main drawbacks is that it can exhibit a higher than market beta during selloffs. This means that investors may experience increased volatility in their investments.

Another weakness of AVI is that its activism may not always result in positive outcomes. This is a risk that investors should be aware of when considering an investment in AVI.

AVI's ongoing charges ratio is higher than that of peers due to the increased cost of activist investing. This is something to consider for investors who are looking to minimize their costs.

Here is a summary of AVI's strengths and weaknesses:

AVI also has some opportunities for growth. One of its key opportunities is that it offers investors several near-term return opportunities thanks to its pipeline of activist activity.

AVI's wide double discount and the possibility of a near-term rebound in performance present an attractive entry point. This is something to consider for investors who are looking to get in on the ground floor.

However, AVI also faces some threats. One of its main threats is that it has a high concentration in some holdings, which may drag on the trust if AVI's theses do not play out.

Ongoing global uncertainty could continue to drag on the valuations of AVI's holdings, and may complicate current buyout activity. This is a risk that investors should be aware of when considering an investment in AVI.